Monetary reserve

(redirected from International Reserve)

Monetary Reserve

The foreign currencies and precious metals that a central bank holds. A central bank's monetary reserve allows it to regulate its own currency; that is, a central bank with a large amount of reserves in euros is likely to closely follow or even peg its currency to the euro. On the other hand, central banks that keep monetary reserves in multiple currencies are more likely to follow either a basket peg or to have a floating currency. A monetary reserve is also called a currency reserve.

Monetary reserve.

A government's monetary reserve includes the foreign currency and precious metals that its central bank holds. That reserve enables the government to influence foreign exchange rates and to manage its transactions in the international marketplace.

For example, a country with a large reserve of US dollars is in a position to make significant investments in US markets.

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Summary: TEHRAN (FNA)- The United States has for decades determined the world's international reserve currency and foremost currency of trade.
The SDR -- a virtual currency whose value is currently based on the yen, euro, pound and dollar -- is an international reserve asset that the IMF uses for emergency lending to its members.
Turning to consider future possible reserve currencies, hat would have to happen for the Chinese RMB to merge as an international reserve currency?
Oil exporters in the Middle East and North Africa region are expected to increase their international reserve positions by over $100 billion in 2010 as oil prices rebound, the IMF said.
There is no alternative to the dollar as an international reserve currency at present, but it would be desirable if an alternative could be created, Libya's central bank governor said Thursday.
Aizenman, J., and Nancy Marion (2002) International Reserve Holdings with Sovereign Risk and Costly Tax Collection.
Might the dollar eventually follow the precedent of the pound and cede its status as leading international reserve currency?
"In our view, ad hoc bilateral loans and deposits are serving to support Egypt's international reserve position at current low levels, buying Egypt a limited amount of time to deliver more sustainable public finances and avoid a balance of payments crisis.
DUBAI: Oil exporters in the Middle East and North Africa region are expected to increase their international reserve positions by over 100 billion dollars in 2010 as oil prices rebound, the IMF said on Sunday.
Before China's recent announcement, twenty-five countries had already set up such funds to better manage their excess international reserve holdings, while an additional six countries had announced plans to set up their own funds.
For example, until early 1995, Mexico announced its international reserve position only three times a year or when otherwise convenient.
In a recent intervention, Ms Norica Nicolai, a member of the European Parliament, accused the BNR of lacking transparency regarding the administration of Romania's international reserve, especially the gold reserve.

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